*EPF103 01/24/00
Text: Transportation Dept. to Award New U.S.-China Air Services
(Agreement allows for new carrier, 10 new flights) (450)

The U.S. Department of Transportation announced January 24 that it has begun the process to add new U.S. airline service in the U.S.-China market by April 2001.

According to the announcement, the U.S.-China aviation agreement of April 1999 allows a fourth U.S. carrier to enter the market in April 2001, and adds 10 weekly flights among the U.S. carriers able to serve the market. Three U.S. carriers -- Northwest Airlines, United Airlines, and Federal Express -- have been serving the market under the agreement since August 1999.

Following is the text of the Department of Transportation announcement:

(begin text)

U.S. Department of Transportation

FOR IMMEDIATE RELEASE
Monday, January 24, 2000

DOT 15-00

DOT To Award New U.S.-China Air Services

The U.S. Department of Transportation today began the process to add new U.S. airline service in the U.S.-China market.

"President Clinton and Vice President Gore have made expanding trade a top priority because it leads to economic growth that creates opportunity and jobs here in the United States," U.S. Transportation Secretary Rodney E. Slater said. "These new flights, along with the new service we already have added in the U.S.-China market, will provide travelers and shippers better service and a broader range of competitive choices."

The U.S.-China aviation agreement, reached in April 1999, significantly expanded air services between the two countries. In August, DOT awarded a total of 17 new weekly flights to the three U.S. carriers -- Northwest Airlines, United Airlines, and Federal Express -- already serving the market. The agreement also allows a fourth U.S. carrier to enter the market in April 2001, and adds 10 weekly flights among the U.S. carriers then able to serve the market.

Carriers applying for the new right to serve China are American Airlines, Delta Airlines, United Parcel Service (UPS) and Polar Air Cargo. American, Delta and UPS each have requested all 10 of the newly available weekly flights, while Polar is seeking six. In addition, Northwest, United and Federal Express seek to add additional flights to their existing services.

After the department receives evidence and briefs from the interested parties, it will issue a tentative decision, following which the parties will have a further opportunity to comment. After the department reviews comments on the tentative decision, it will issue a final order.

Direct exhibits are due Feb. 29, rebuttal exhibits March 28 and briefs April 25. Carrier applications and other filings in the case may be obtained via the Internet at http://dms.dot.gov/, docket OST-99-6323.

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(Distributed by the Office of International Information Programs, U.S. Department of State)
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